Leading Japanese automotive manufacturer Toyota Motor Corp. (TYO: 7203) has suspended production activities at two of its factories in Japan following the continued global chip shortage. This development was announced by the company’s spokesperson on December 9.
This news means that the company won’t be able to bounce back to normal operations as it had earlier announced that it will be resuming normal production activities this month.
“Production at the factories was halted on Wednesday and the suspension is expected to continue for about three days,” said the spokesperson who emphasized that the suspension was prompted by a supply chain distribution in Japan and lack of labor shortage in Vietnam due to the pandemic.
“The company expects a production fall of 3,500 vehicles from the stoppage, but will keep its target to produce 9 million vehicles worldwide during the financial year ending on March 31,” added the spokesperson.